Objectives:
With this module students will learn about:
College Board Microeconomics Content Area
D. Firm behavior and market structure
1. Profit
c. Profit maximization: MR=MC rule
2. Perfect competition
a. Profit maximization
b. Short-run supply and shutdown decision
c. Behavior of firms and markets in the short run and in the long run
d. Efficiency and perfect competition
Georgia Performance Standards:
SSEF6 The student will explain how productivity, economic growth, and future standards of living are influenced by investment in factories, machinery, new technology, and the health, education, and training of people.
a. Define productivity as the relationship of inputs to outputs.
SSEMI4 The student will explain the organization and role of business and analyze the four types of market structures in the U.S. economy.
b. Explain the role of profit as an incentive for entrepreneurs.
c. Identify the basic characteristics of monopoly, oligopoly, monopolistic competition, and pure competition.
Web based activities for this module:
2. Review Additional Resources:
Non-Web based activities for this module:
With this module students will learn about:
- How changes in the industry effect the profits and losses of the firm.
- How to determine if a firm is making normal profits, economic profits, or is in loss minimization
- Students will be able to calculate the amount of profit or loss experienced by the firm
- To predict how the industry supply will be affected by the profits and losses of the majority of firms.
- How to determine if a company should stay in business or shut-down, and when a company may exit the industry.
College Board Microeconomics Content Area
D. Firm behavior and market structure
1. Profit
c. Profit maximization: MR=MC rule
2. Perfect competition
a. Profit maximization
b. Short-run supply and shutdown decision
c. Behavior of firms and markets in the short run and in the long run
d. Efficiency and perfect competition
Georgia Performance Standards:
SSEF6 The student will explain how productivity, economic growth, and future standards of living are influenced by investment in factories, machinery, new technology, and the health, education, and training of people.
a. Define productivity as the relationship of inputs to outputs.
SSEMI4 The student will explain the organization and role of business and analyze the four types of market structures in the U.S. economy.
b. Explain the role of profit as an incentive for entrepreneurs.
c. Identify the basic characteristics of monopoly, oligopoly, monopolistic competition, and pure competition.
Web based activities for this module:
- Watch the following videos
- Perfect Competition in the short run
- Maximizing Profit: MR=MC Rule on a Chart
- Perfect Competition in the Long Run
- Graphing Perfect Competition Practice
- Practice FRQ's: 2010 Released FRQ and 2006 Released FRQ
2. Review Additional Resources:
- Perfect Competition Quiz
- Reffonomics: Side-by-side Graphs
- Reffonomics: Change in Demand
- Reffonomics: Entry/Exit
- Reffonomics: Shut-Down Rule
- Reffonomics: Shut-Down Rule 2
Non-Web based activities for this module:
- Workbook Assignments - Listed w/ due dates on Edmodo
- Profit/Loss Worksheet - Posted on Edmodo
- Textbook Chapter 21